Question

2
Cash Payments Schedule Fein Company provided the following information relating to cash payments: a. Fein purchased direct materials on account in the following amounts: June $68,000 July 77,000 August 73,000 b. Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month. C. In July, direct labor cost was $32,800. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month. d. August overhead amounted to $71,200, including $6,350 of depreciation. e. Fein had taken out a 4-month loan of $22,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31. (Note: Use whole months to compute interest payment.) Required: Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.

Answer 1

Fein Company Schedule of Cash payments For August Payments in Accounts Payable From July furchases Around & lift, olx 180 % $161,600] from August purchases & 173000 x 120" ${14,600 Direct labour payments from July & [32800 1 x 10 " $13280 h From August $135 400 1 x [20] $131860] overhead 8764,850 Loan payment [22000x 12 x 1 e 2660 (22000 + 660] Cash payment 1$ 198850) Cash payment for August $19850) 22660